Town keeper Scott Bevan produced a wonder save in each half to deny rampant Posh striker Andy Clarke but it wasn't enough to prevent the Terriers crashing to another defeat.
Bevan got the better of Clarke twice in one on one confrontations, but could do nothing to stop Peterborough captain Andy Edwards tapping in the winner six minutes from time.
Edwards was the first to react after substitute David Farrell's long-range free-kick smacked of the bar with the Posh captain guiding the ball into the empty net to register his first goal of the season.
It also handed the visitors their first win in seven games and ended a goalless run of three matches.
But Huddersfield's problems on and off the field continue to mount. Town have now won just once in 14 league and cups games and have the worst scoring record in the football league with just 19 goals all season.
The club appear on the verge of administration. Huddersfield have £6million pounds of debts and are saddled with a £3million wage bill that is crippling the board of directors. Chairman David Taylor is set for talks with the players and PFA representatives on Monday about pay cuts and if no long-term solution to the problems are found, Town could become the latest team to call in the administrators.
Huddersfield dominated possession throughout the match but their lack of power up front was in evidence again as it took 54 minutes to get a shot on target.
But Jon Stead's tame 20-yard daisycutter did not trouble Peterborough keeper Lee Harrison.
The Posh, however, looked sharper and it was only Bevan's brilliance on 27 minutes that stopped Clarke handing the visitors the lead. Clarke broke through Town's offside trap and fired in a powerful low drive which Bevan spectacularly parried by diving at full stretch to his left.
And Bevan, on loan from Southampton, denied Clarke again on 76 minutes when the striker raced away from a pack of Town defenders and tried to catch the keeper out with a snap shot at the near post.